A bus operator is abandoning a town link service in Malton because of the rising cost of fuel.

Yorkshire Coastliner Ltd (YCL) says revenue is insufficient to cover increasing costs, and running the number 93 Townlink Service is no longer economically viable.

The service brings shoppers into the town centre from the outskirts of Malton and Norton.

A new subsidised service will now operate in the town after North Yorkshire County Council put the contract out to tender, but the name of the new operator has not yet been revealed.

The company claimed today that this service will run at a considerably lower level, but this was denied by the council, which says the service will be completely unaffected by the change.

Managing director Stuart Wilde said bus operators throughout the UK had been badly hit by rising diesel fuel prices.

"YCL has run the Townlink service without any form of public subsidy, and frankly the fares revenue generated no longer covers the operational cost. Like any other business, we have decided to cease the operation," he said.

"YCL will certainly look carefully at the tender documents and we will quote a fair price to operate at our level of service; however North Yorkshire County Council has taken up the cheapest tender.

"As a result, I fear that although Malton will still have a town bus service, the level which will be provided will be considerably lower than people have come to expect."

But North Yorkshire County Council transport manager Richard Owen said the level of service would remain unaffected by the changeover.

He said: "The service is used as a shopper for Malton residents. Passengers should notice no difference in service when the changeover takes place on October 16."